Welcome / Welkom 1 Welcome to the Welkom op de jaarlijkse Annual General Meeting Algemene Vergadering van of Shareholders Aandeelhouders In order to hear a Voor het beluisteren van simultaneous translation in een simultaanvertaling English please choose in het Nederlands kiest u channel 11 kanaal 10
Welcome – Welkom Annual General Meeting of Shareholders The Hague, May 18, 2018 Algemene Vergadering van Aandeelhouders Helping people achieve a lifetime of financial security
Welcome / Welkom 3 Rob Routs Chairman Supervisory Board --- Voorzitter Raad van Commissarissen
Welcome / Welkom 4 Welcome to the Welkom op de jaarlijkse Annual General Meeting Algemene Vergadering van of Shareholders Aandeelhouders In order to hear a Voor het beluisteren van simultaneous translation in een simultaanvertaling English please choose in het Nederlands kiest u channel 11 kanaal 10
Agenda item 1 / Agendapunt 1 5 1 Opening
Agenda item 2 / Agendapunt 2 6 2 2017 Business overview Presentatie over de gang van 2 zaken in 2017
Becoming a Future Fit Aegon Alex Wynaendts The Hague, May 18, 2018 CEO & Chairman of the Executive Board Helping people achieve a lifetime of financial security
Becoming a Future Fit Aegon 8 8 Today’s storyline Helping people to achieve a lifetime of financial security • Our operating environment • Aegon’s triple transformation - Strategic - Financial - Organizational/cultural • Conclusions
Our operating environment 9 Operating in a fast-moving, highly regulated environment World economy Financial markets Regulation Political Our society • In 2017, continued • In 2017, markets • Data protection • Increased • Aging – living longer, improvement performed well due uncertainty in key healthier lives • Capital to low volatility markets • Relatively low growth • Wealth and health • Interest rates • Emergence of new • Distribution in developed closely linked countries increased, but international • New technologies remain low • Reporting development agenda
Becoming a Future Fit Aegon 10 Strategic transformation Financial transformation Triple Organizational/cultural transformation transformation
Strategic transformation 11 From product manufacturer to financial services provider To help people achieve a lifetime of financial security …through guidance …to trusted provider From working life and advice… of retail solutions Protection Accumulation At & after retirement We protect what’s important to We help our customers save We provide our customers with a our customers, their families, and invest for the future stable income in retirement, their health and helping to meet costs of care and securing their families’ future their homes
12 Strategic transformation Expand relationship with our customers Throughout their financial lifecycle Aegon UK’s leading platform Knab in the Netherlands Transamerica Knab has over 175,000 Transforming into a digital platform Offering funds, savings customers; 91% of whom are business providing customers what products and pensions to (very) satisfied customers, their employers they want: relevant solutions and a and financial advisors meaningful experience
Strategic transformation 13 Increased focus on digitization and innovation • Established Center of Excellence for Digital to accelerate digitization Accelerate innovation • Roll-out of digital training programs to employees • Nearly USD 140 million committed to start-ups and new technologies • Greater customer satisfaction and significant uplift in converting Enhancing customer experience customer leads to sales through new technologies • Average saving of 10%-20% for each process supported by robotics • Global standardization of cloud services Leverage cloud technology • Use of cloud services leads to efficiency improvements and cost savings • Turn data into meaningful insights for our customers • Move closer to personalized pricing Usage of data lakes and big data • Reduction in claims and frauds through BlockChain and Artificial Intelligence
Strategic transformation 14 An integrated responsible business With the ambition to be a trusted partner for prosperous and healthy lives Our society benefits from healthy aging • Leading research on retirement readiness & well-being • EUR 325 million invested in elderly care homes NL and UK Making our environment healthier and cleaner • EUR 436 million invested in renewable energy • Exclusions on investments in coal mining and tobacco Helping our customers enjoy prosperous and healthy lives • Transamerica Wealth + Health proposition • In 2017, close to EUR 50 billion paid out in claims and benefits
Becoming a Future Fit Aegon 15 Strategic transformation Financial transformation Triple Organizational/cultural transformation transformation
Strategic transformation 16 Changed company profile As a result of execution of strategy While growing our business Optimized value of backbook Responded to Generated average changing environment annual sales growth of Realized extensive 15% from 2010 to 2017 expense savings Divested over Invested in digital EUR 5 billion of Significantly reduced business models non-core activities size of run-off portfolio since 2010 Created successful Active management of Transformed from asset manager underperforming product manufacturer to business lines lifetime service provider
Strategic transformation 17 Investing in growth opportunities While divesting non-core businesses Exceeded • Pay-out annuity and BOLI-COLI, Transformation • Assets on platform reached a target to reduce as well as half of remaining life Aegon UK to capital allocated record high of GBP 117 billion to run-off #1 platform reinsurance businesses divested businesses provider • Sixth consecutive year of positive Competitive performance Divested • Sold to Aon for EUR 295 million external third-party net inflows partly UMG Aegon Asset driven by joint ventures Management • Focus on growth of our US business • Sold to Athora with net proceeds Partnership Sale of supported by outsourcing administration Transamerica Aegon of approximately EUR 195 million and TCS Ireland of around 10 million policies
Financial transformation Financial transformation 18 18 Management actions lead to tangible results Strong deposits Fee-based earnings growth percentage increased 29% 3x 2011-2017 CAGR to 45% since 2010 Significant Total 2017 dividend improvement SII ratio EUR 559m 201% 6th consecutive +44%-points increase compared to end-2016
Financial transformation 19 On track to deliver on key financial targets Run-rate annualized expense savings Strong sales momentum (EUR million) (EUR billion) 20 CAGR 300 +23% EUR CAGR 10 200 350m* of 100 >10% 0 0 2015 2016 2017 2018 2016 2017 2018 Target Target TCS agreement Return on Equity increasing Cumulative capital return to shareholders (%) (EUR billion) 10% 2 EUR 10% 5% 1 2.1bn 0 0% 2016 2017 2018 2015 2016 2017 2018 Target Target * EUR 350 million consists of USD 300 million (EUR/USD 1.05), EUR 50 million from NL and EUR 15 million from the Holding
Becoming a Future Fit Aegon 20 Strategic transformation Financial transformation Triple Organizational/cultural transformation transformation
Organizational/cultural transformation 21 Seizing new opportunities and identifying areas of growth • Future Fit cultural change program implemented - Adapting quickly to new opportunities - Owning problems and solutions Acting as One One Aegon: building on others’ achievements within Aegon - - Customer at the heart of everything we do • Maintaining, developing and attracting skills & capabilities - Center of Excellence for Digital Customer - Analytical Academy centric - Digital accelerator program • Changing the way we work & how we are organized Accountability Agility - Working with partners, outsourcing certain functions - Investing in start-up fintech companies - Structural changes & modernization efforts
22 PLACEHOLDER FUTURE FIT VIDEO
Financial transformation Organizational/cultural transformation 23 23 Customers and employees responding very positively Customer Employee engagement Net Promoter Score (% per quartile) (% per quartile; versus peers) 61% 35% 48% 65 63 25% 13% 10% 2016 2017 Feb 2017 Nov 2017 1st Quartile 2nd Quartile Feb 2017 Nov 2017
Conclusions 24 Successful execution on our strategy Becoming a Future Fit Aegon • Successfully changing the profile of the company • Transformation continues with increased focus on digitization • Well-positioned to deliver on key 2018 financial targets • Positive outlook for future growth
Agenda item 3 / Agendapunt 3 25 Annual Report and annual 3 accounts 2017 3 Jaarverslag en jaarrekening 2017
Agenda item 3.1 / Agendapunt 3.1 26 3.1 Reports of the Boards for 2017 Verslagen van de Raad van Bestuur 3.1 en de Raad van Commissarissen over 2017
Our financial performance in 2017 Matt Rider The Hague, May 18, 2018 CFO & Member of the Executive Board Helping people achieve a lifetime of financial security
Recommend
More recommend
